9911796707
TMI Blog2021 (3) TMI 736X X X X Extracts X X X X X X X X Extracts X X X X ..... d 22.11.2018 respectively had been served upon the assessee and the assessee did not have responded to the notices and failed to furnish necessary information called for by the revenue. As carefully examined the reasons for reopening we find that the information received by the concerned department was specific, clear and unambiguous, so far the involvement of the assessee is concerned. The Assessing officer has observed that the main business of Harshaben Gosai and Kundan Mudaliar was to provide accommodation entries through bogus billing without actual delivery of goods and the assessee company was one of the beneficiaries amongst the other companies whose names were given by the Kundal Mudaliar. Assessing Officer further observed that the name of assessee company was also found in the bank statement of Mahavir Enterprise. Assessing Officer has further observed that the assessee company has received payment from PM Co. and made the payment of 9628150/- to J.K. Enterprise and the name of these two entities were also found in the bank statement of Mahavir Enterprise. Assessing Officer after receiving the information had verified the details of the assessee and called for informatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng total income ₹ 29,80,240/- and then same was processed under Section 143(1) of the Act, 1961. 2.2 The Assessing Officer has issued notice under Section 148 of the Act, 1961 based on the reason recorded dated 30.08.2018. In response to the impugned notices, the Assessee- Company filed its return of income on 06.08.2018. A copy of the reason recorded provided to the Assessee-Company. The Assessee-Company had raised an objection vide letter dated 04.09.2018, which was disposed of by passing speaking order dated 10.09.2018. Notices under Section 143(3) and 142(1) of the Act were issued, asking the Assessee-Company to submit its reply with respect to questioning contained therein. The Assessee- Company has not responded to the notice issued under the Act, 1961. 2.3 The reason for reopening recorded by the Assessee- Company reads as under;- 2. The erstwhile ITO, Ward-12(4), now ITO. Ward-6(1)(5), Ahmedabad has forwarded the information pertaining to Cemach Machineries Ltd. Gathered while finalizing the assessment of Smr. Harshaben Rashikbharti Gosai prop. Of Mahavir enterprise for A.Y. 2011-2012. During the course of assessment proceedings in the case of Smt. Harsahaben Rash ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2,500/- - Total ₹ 2,16,49,490/- Entries reflected in the bank statement of J.K. Enterprise (A/c No.670011005614) No Date Amount received from P.M.& Company (Rs.) Paid to P & M & Company (Rs.) 1. 16.03.2011 - 13,00,650/- 2. 16.03.2011 - 37,55,000/- 3. 17.03.2011 - 45,72,500/- Total 96,28,150/- 5. The returned income of Cemach Machineries Ltd. For AY 2011-12 is ₹ 29,80,240/- and profit from business amounts to ₹ 38,24,505/-. Gross purchases during the year is ₹ 22,12,70,888/- which is 109% of immediate previous year and sales amount ₹ 26,34,96,951/- is approximately 80% more than that of AY 2010-11. Opening stock is ₹ 6,88,61,000/-. From the bank statements of P.M. & Co. & J.K.Enterprise, it is seen that the assessee has made transaction with these concerns which in turn route it to the bank a/c of Mahavir enterprise . Smt. Harshaben Rahikbharti Gosai, who carries out bogus billing for commission. As it is proven that no actual purchase/sales takes place, the sales/purchases shown in the books of assessee are nothing but its unaccounted money brought into its books. Since, it has been established that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , without actual delivery of the goods and the money doubted to the bank account of Mahavir Enterprise, who managed to provide accommodation entries through bogus billing activities and the assessee has received the benefit of bogus entry and the income earned from this transactions has escaped assessment. 4. Being aggrieved with the proceedings of reopening of the AY 2011-12, the writ applicant has come up before this Court by filing this writ-application. 5. We have heard Mr. K.M.Shah, the learned counsel appearing for the writ-applicant and Mrs. Mauna Bhatt, the learned Senior Standing Counsel appearing for the revenue. 6. Mr. A.K. Shah, the learned counsel appearing for the writ-applicant has raised the following contentions. A) It was submitted that, the impugned notice is bad in law and the respondent, while issuing the notice, has acted illegally and without jurisdiction as the reopening is mainly based on the information received, cannot be said to be tangible material and after receiving the information the Assessing Officer has not applied his mind independently or made any inquiry before forming the belief that the income has escaped assessment. B) It was further ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he year under consideration were provided by main two entities i.e. PM & Co. and J.K. Enterprise, who have direct linked with the Mahavir Enterprise as the name of two entities were appeared in the bank statement of the Mahavir Enterprise. In this circumstance, the Assessing Officer having rightly concluded that the Assessee had received the amount of ₹ 3,12,77,640/- by way of bogus sales / purchase through bogus invoice/ vouchers and has reason to believe that the income for the year under consideration has escaped assessment within the meaning of Section 147 of the Act, 1961. 11. In view of the above contentions, learned Senior Standing Counsel appearing for the revenue urged that the writ application has not any merits and may not be entertained. 12. We have carefully considered the rival submission and also placed material placed on record. 13.It is settled law that Section 147 of the Act authorizes and permit the Assessing Officer to assess or reassess income chargeable to tax, if he has reason to believe that the income for any assessment year has escaped assessment. The expression 'reason to believe' has been explained by the Apex Court in the case of CIT Vs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one of the beneficiaries amongst the other companies whose names were given by the Kundal Mudaliar. The Assessing Officer further observed that the name of assessee company was also found in the bank statement of Mahavir Enterprise. The Assessing Officer has further observed that the assessee company has received payment of ₹ 2,08,49,490/- from PM & Co. and made the payment of ₹ 9628150/- to J.K. Enterprise and the name of these two entities were also found in the bank statement of Mahavir Enterprise. 19. We find that the Assessing Officer after receiving the information had verified the details of the assessee and called for information under Section 133(6) of the Act and also obtained bank statement of all concerned and finally observed that the transactions made with two entities through bank channels having direct link with Mahavir Enterprise as money has routed through the bank account of Mahavir Enterprise and Harshaben Gosai being a Proprietor of the Firm managed to provide accommodation entries through bogus billing and the sales and purchase shown in the books of assessee are bogus and the assessee has received the benefit of bogus entry and the income earned ..... X X X X Extracts X X X X X X X X Extracts X X X X
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